Mayors are concerned about debt exemption too

We’ve got a story in today’s Times Union about a bill on Gov. David Paterson’s desk which would increase the value of exemptions to property that people can lose when they declare bankruptcy or are sued by creditor such as banks that issue credit cards.

Banks, though, aren’t the only ones who oppose the NYPIRG-backed measure, which has the support of consumer advocates as well as numerous law professors. New York City Mayor Michael Bloomberg is also concerned about a clause that would increase the equity that a debtor can keep in his or her car — the mayor and other municipal officials believe it would hinder their efforts to tow and then fine parking scofflaws.

Supporters of the bill say that could be fixed with an amendment but a similar amendment was shot down by the Assembly when the legislation passed earlier in the year.

Here are some details, along with objections from bankers — we’re hearing a decision on the bill could come as early as today.